This week was very similar to last week. I locked in some nice premiums but I was only assigned on 2 Covered Calls. This leaves me with a list of holdings to sell Calls against this week. I would love a big up day on Monday to get the week started. However, I’m not optimistic! What ever the market does I’ll try to have another week of locking in some nice premiums.<\/p>\n
The first trade I exited this week was with HUYA. I took a shot with this one because it had very high option activity. I got in a Covered Call with the hopes the stock was gonna pop. It never did!<\/p>\n
One thing you have to remember about high option activity, or unusual activity, is you really can’t tell who initiated the option contract. Was it mostly people buying options and they found people selling, or did the high activity start with a ton of people selling options. You really can’t tell. All options have a buyer and a seller. The motive for high option activity could have been because a lot of people were selling options because they felt the stock was going down. I hope this makes sense, but the bottom line is you really can’t tell if a stock is gonna go up or down just by the option activity. Don’t let the CNBC’s Najarian Bros fool you with there money making scheme.<\/p>\n
Embarrassing this about this trade is I first heard about the high option activity from the Najarians Bros lol. We all live and learn. One of the reasons I do Main Street beats Wall Street<\/strong> is to help Grasshoppers learn from my mistakes. Both old mistakes and new ones, like this one!<\/p>\n HUYA<\/strong><\/p>\n I bought 1000 shares of HUYA at $25.17 and sold an In-the-Money Call. I sold 10 7\/24\/20 $25 Calls. I sold an In-the-Money Call because I was not convinced the stock was gonna move so I figured I might as well take the higher premium in case it goes down. Right out of the gate I didn’t like the way it was moving so in one day I got completely out of the position with only a $100 loss. I sold the stock and did a “Buy to Close” in the option. I lost $920 on the stock but I kept the high premium of $820.<\/p>\n 7\/21\/20 \u2013 Buy 1000 Shares HUYA @ $25.17<\/strong><\/p>\n 7\/22\/20 \u2013 Sell 1000 Shares HUYA @ $24.25 <\/strong><\/p>\n 7\/21\/20 \u2013 Sell to Open 10 HUYA 7\/24\/20 $25.00 C @ $1.07 (+$1070)<\/strong><\/p>\n 7\/22\/20 \u2013 Buy to Close 10 HUYA 7\/24\/20 $25.00 C @ 25\u00a2 (-$250)<\/strong><\/p>\n Draftkings<\/strong><\/p>\n This was one of the better trades of the week. It was a Covered Call I was assigned on. Exactly what I love! Made $100 on the stock and keep the $2000 premium.<\/p>\n 7\/16\/20 \u2013 Buy 1000 Shares DKNG @ $35.90<\/strong><\/p>\n 7\/24\/20 \u2013 Assigned 1000 Shares DKNG @ $36.00 <\/strong><\/p>\n 7\/20\/20 \u2013 Sell to Open 10 DKNG 7\/24\/20 $36.00 C @ $2.00 (+$2000)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 10 DKNG 7\/24\/20 $36.00 C <\/strong><\/p>\n Nvidia<\/strong><\/p>\n This was another Covered Call with assignment. This was done with 100 shares of NVDA. Made a nice $250 on the stock and a great $1000 on the premium.<\/p>\n 7\/14\/20 \u2013 Buy 100 Shares NVDA @ $404.75<\/strong><\/p>\n 7\/24\/20 \u2013 Assigned 100 Shares NVDA @ $407.50 <\/strong><\/p>\n 7\/20\/20 \u2013 Sell to Open 1 NVDA 7\/24.20 $407.50 C @ $10.00 (+$1000)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 1 NVDA 7\/24\/20 $407.50 C <\/strong><\/p>\n Draftkings<\/strong><\/p>\n This was a 5 contract Call that expired. On this one I was not assigned.<\/p>\n 7\/6\/20 \u2013 Sell to Open 5 DKNG 7\/24\/20 $41.50 C @ 60\u00a2 (+$300)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 5 DKNG 7\/24\/20 $41.50 C <\/strong><\/p>\n Peloton<\/strong><\/p>\n This is was one of my PTON trades. I had 2. I was not assigned on either one. I’ve been making a lot of money with this stock. It might be running out go gas. Still got a great premium!<\/p>\n 7\/15\/20 \u2013 Sell to Open 10 PTON 7\/24\/20 $69.00 C @ $1.10 (+$1100)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 10 PTON 7\/24\/20 $69.00 C <\/strong><\/p>\n United Airlines<\/strong><\/p>\n Another stock I’ve been trading a lot with. No assignment so I keep the premium and try again this coming week.<\/p>\n 7\/20\/20 \u2013 Sell to Open 5 UAL 7\/24\/20 $37.00 C @ 80\u00a2 (+$400)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 5 UAL 7\/24\/20 $37.00 C <\/strong><\/p>\n Peloton<\/strong><\/p>\n The other PTON trade. Again, no assignment, but a nice premium!<\/p>\n 7\/20\/20 \u2013 Sell to Open 10 PTON 7\/24\/20 $64.00 C @ $1.20 (+$1200)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 10 PTON 7\/24\/20 $64.00 C <\/strong><\/p>\n Micron<\/strong><\/p>\n This is about the 4th or 5th week I brought in a premium on the same stock because of no assignment. Hopefully get another Call sold this week.<\/p>\n 7\/20\/20 \u2013 Sell to Open 10 MU 7\/24\/20 $51.50 C @ 50\u00a2 (+$500)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 10 MU 7\/24\/20 $51.50 C <\/strong><\/p>\n Draftkings<\/strong><\/p>\n This is the 3rd trade of the week with DKNG. Assigned on a 10 contract and not assigned on (2) 5 contract Calls. As you see this is one of the 5 contracts.<\/p>\n 7\/21\/20 \u2013 Sell to Open 5 DKNG 7\/24\/20 $38.50 C @ $1.50 (+$750)<\/strong><\/p>\n 7\/24\/20 \u2013 Expired 5 DKNG 7\/24\/20 $38.50 C <\/strong><\/p>\n You know you’re doing well when you’re disappointed with this week!<\/p>\n Enjoy the rest of the weekend.<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" This week was very similar to last week. I locked in some nice premiums but I was only assigned on 2 Covered Calls. This leaves me with a list of holdings to sell Calls against this week. I would love a big up day on Monday to get the week started. However, I’m not optimistic! […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-8244","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-28Y","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8244"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8244\/revisions"}],"predecessor-version":[{"id":8245,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8244\/revisions\/8245"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Loss \u2013 $920<\/strong><\/span><\/h4>\n
Profit +$820<\/strong><\/span><\/h4>\n
\nProfit +$100<\/strong><\/span><\/h4>\n
Profit +$2000<\/strong><\/span><\/h4>\n
\nProfit + $275<\/strong><\/span><\/h4>\n
Profit +$1000<\/strong><\/span><\/h4>\n
\nProfit +$300<\/strong><\/span><\/h4>\n
\nProfit +$1100<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$400<\/span><\/strong><\/h4>\n
\nProfit +$1200<\/strong><\/span><\/h4>\n
\nProfit +$500<\/strong><\/span><\/h4>\n
\nProfit +$750<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain +$7525<\/strong><\/h2>\n
\n